Make Money Online | Start A Business | Create Wealth

Tax Facts 2009 & 2010

by cholder on April 9, 2010

taxesIt is critical to stay on top of the current tax rules so that you can take advantage of every way to save money. Below are the tax limits and rules.

  • For the 2009 and 2010 tax years, the personal exemption amount is $3,650. You will claim a personal exemption for yourself, your spouse, and each of your dependents. For 2009, the exemption is phased out for taxpayers with an AGI over $166,800 (or $250,200 if married filing jointly); for 2010 the personal exemption phase out is repealed.
  • The standard deductions for both 2009 and 2010 are $5,700 for single individuals, and $11,400 for married couples. When your allowable deductions exceed these limits, you will benefit from itemizing. For 2009, itemized deductions are reduced by 3% of a taxpayer’s of AGI in excess of $166,800, and in 2010 this limit has been repealed.
  • The maximum contibution into an IRA is $5,000 per individual for 2009 and 2010, with $1,000 catch-up if you’re 50 or older. Remember, you have until April 15, 2010 to contribute to your IRA for 2009.
  • Annual Gift Tax Exclusion amount is $13,000 in 2009 and 2010.
  • Required Minimum Distributions (RMDs) from IRAs, 401(k), 403(b), Profit-Sharing, Money Purchase Pension, and certain 457 retirement plans are re-instated for 2010, after being waived for the 2009 tax year. If you turned 70 1/2 in 2009, you have until December 31, 2010 to take your first distribution.

Good Luck with your Taxes.

{ 0 comments }

Changing jobs can be very challenging and we all get the feeling that we don’t want to offend or ruin our reputation on our way out. The simple fact of the matter is that you are leaving and your previous company needs to replace you or move your duties on to someone else. Mark Suster provides excellent advise as to how to approach this issue. On the ownership site when you are hiring a new employee, you need to have the correct strategy to transition them out of the old company and into yours. Think of the different situations be smart about the smooth transition.

I know that this will sound like a random post topic for startup advice but I promise it’s relevant.  You actually need to give advice to nearly every employee whom you offer a job to on how to best quit their job.  This is important to improve conversion rates of accepted offers / joiners, shorten the time-to-join ratio and the improve the ability of that employee to maintaing good relations with their former employer.

When I started blogging I had an idea.  I would take all of the one-on-one conversations that I have with entrepreneurs from the things I’ve learned and just write them up for anybody to read.  This is advice that I end up giving ALL THE TIME and every CEO of a company I’m involved with will have heard this from me (also, please remember my disclaimer – I’m not a lawyer).

You just made an offer to a new employee to join your company.  It might be a VP of Sales, Marketing or Technology.  Or it may just be a junior programmer, sales rep or accountant.  The reality is the same.  In a startup you want them to join immediately. Tomorrow if possible.

Yet they of course need to serve notice.  There is always some version of the following scenario:

  • they’ve worked at their employer for 3-4 years
  • they really like their boss
  • they don’t want to leave on bad terms
  • their boss asks them to just work 4-6 weeks so he / she isn’t left in a bad position
  • better yet, they’ve said,  ”help me understand what we could improve so you’d be happier staying”

Should you just let them deal with this themselves? No, of course not!  You’re an entrepreneur – you’re allowed to be a bit of a control freak.  I leave nothing to chance.  Left to their own devices most employees will muck up their exit.  Why?  They quit jobs very seldom (hopefully, otherwise, please reconsider whether you really want to hire them.  Job hoppers NEVER make good employees.  Kind of obvious even though many people overlook this).  Yet if your company is growing you deal with people quitting their employers to join you all the time.  So you have more experience in helping to manage the process.

I operate on the principle that you’re most vulnerable in any deal immediately after you’ve won.  I believe the same is true in recruiting.  So your goal is to get the employee working in your company as quickly as possible and with the least amount of collateral damage.

How do you deal with the time pressure issues? Sales people are normally tossed out the door when they quit their jobs.  So that one is usually easiest.  But for all other roles it can be tough.  Employees who are about to join you get “guilted” into sticking around longer than is necessary.  My argument to the incoming employee was always, “look, BigCo is never really going to miss you materially once you’re gone – it just feels like that.  They’re going to pressure you into staying longer than you should. Don’t.  Trust me, if they were doing layoffs they wouldn’t keep you an extra month just to be nice.  They key is to be very professional and courteous on the way out.  Then you’ll be fine.  And we really, really need you in two weeks so please do your best not to get suckered into extra time.”

I had a tactic of writing out the line of reasoning for the employee so they knew what to say. The follow are the employees talking points

  • I’ve been offered a role in a new startup that is an exciting new opportunity for me. It’s a lot of responsibility and has fantastic upside.  I’m really excited.
  • So unfortunately I’m going to turn in my notice
  • They’re pressuring me to start next week (this is called “anchoring” (setting short time frames)) but I obviously told them that it would be unfair to give you less than 2 weeks’ notice. So I just want to confirm with you that you want me to stay the full two weeks (a “presumptive close” which makes it sound like, “of course this is the normal sequence of events. I’m just confirming what I’m sure you’ll agree.)

Employer: “Gosh, this is a really crucial time. I really need you to stay for 4-6 weeks if we’re to hit our deadlines.” (invariably this is always their position).

  • I understand why you’d feel that way and I’d love to help. But it’s super important to me that I don’t lose this opportunity and I’m 100% sure I’m going to eventually join. So I’d really like to work with you to minimize any pain for you. I can take those two weeks (again, anchoring and presumtive close) and really do a thorough transition to anybody you’d like. I’m happy to put in evenings and weekends to make this transition smooth. Please let me know how to best help. I know that my new company is being unfair in asking for a week so I’ve pushed for a full two weeks.

Me to future employee, “I know that they’re going to put the pressure on. You need to be resolute. Professional, polite, helpful and hard-working. But resolute. They’re going to try and get you to work longer. They might even try to convince you to stay. In reality they’ll get over your leaving. But we REALLY need you now.”

Why am I such a control freak about this? Noting good has ever come out of a potential employee staying longer at their previous company.  It’s more time that they can be flipped into staying.  They’re always guilted into staying longer than they should.  In this scenario – I lose.  Thus, I try to leave nothing to chance.

How should they talk to their boss about why they’re leaving? The most common mistakes people make is telling their employer why they were unhappy.  This accomplishes nothing.

Only two outcomes:

  1. They’re bitter about the things you told them needed to improve.  Let’s face it – they’ll never improve.  And they’ll invent that history that you were the bad guy for complaining.  Seen it happen – I promise.  No matter how hard they push in the exit interview don’t offer up the dirt.
  2. They use what you’re unhappy about as a means to convince you to stay.  ”Oh, you didn’t have enough leadership opportunities?  We’ll put you in charge of this 10-person tech department.  I always remind employees, “if they really cared about your progression they would have done that proactively.  If they’re doing it now it’s only because they feel they have a gun to their head.  If you weren’t happy before this superficial change is only window dressing. They’re just rolling out the red carpet for you when you’re on the way out the door. If they were like this before what are they going to be like for the next few years of your job.

So my script for employees is to say, “I’m leaving for personal reasons.  I loved my time at YourCo.  I learned so much.  I grew.  I build fantastic friends and I’ll always be part of the alumni club.  But it was just time for me to move on to another opportunity.  It wasn’t YourCo.  It was me.  I was ready for the change.”  My main message is to say you’re leaving for “personal reasons” and no matter how hard you’re pressed don’t give in and expound.  It’s just personal reasons.  Nobody can argue with this.  Nobody can offer you a better role to improve “personal reasons”- when asked what this really means just avoid answering.  ”You know, I was really happy here.  I just have some personal reasons why it’s time for a change.  NewCo seems like a great opportunity for me.”

Summary Recruiting is a very time-consuming and expensive exercise.  Most people put in herculean efforts into the process until the time of the offer being accepted.  And then they leave the rest to fate.  You enter a risky period after they’ve accepted.  You need to get them in your doors as quickly as possible.  There’s nothing worse than losing an employee that said yes but never joined.

One last hack For executive-level hires I like to get a press release written and work with the incoming employee on the wording and importantly timing of the release.  I like to discuss with them a timeline for announcement for 2 reasons: 1) it starts to build in emotional commitment and 2) you get a chance to test their resolve to joining.  You can always tell the person that is not persuaded when they’re not engaged in the press release process.  If they’re not engaged you can: 1) spend more effort making sure they’re bought in or 2) keep more back-up candidates warm.

Source: Mark Suster

{ 0 comments }

Add Leverage for Your Affiliate Business by Outsourcing

December 19, 2009

The objective of leverage is to provide the most advantage with the lowest effort.  Specifically, for internet businesses, that means most ROI with smallest personal involvement, and we can realize this via outsourcing. Preceding articles discussed gaining leverage by 1) re-using, and 2) re-purposing content.  In this article, we’ll discuss gaining leverage by outsourcing routine, [...]

Read the full article →

5 Tips To Successful Landing Page Optimization

December 19, 2009

You need to optimize your landing page in order to pre-sell your affiliate product and increase your sales. Thus, the look and feel of your landing page is very important. The first rule for successful landing page is never have any distraction in your page so that your visitor does only one thing and that is [...]

Read the full article →

Finding The Most Popular Keywords

December 18, 2009

If you are thinking of using Google AdWords to generate money for your website, you have to bid on the right keywords as they play a huge role in your success. People usually use popular keywords and these are often expensive to bid on. This doesn’t have to be so, you can find top keywords [...]

Read the full article →

Google AdWords Advices

December 16, 2009

A lot of people plan to advertise with Google, but there are important things to consider before doing so. It is an undeniable fact that Google played a major role in the web today and Google AdWords has bring in billions of dollars to Google each year. Still, with that immensity, not all advertisers have [...]

Read the full article →

Online Affiliate Programs – Which One Is For You?

December 10, 2009

There are many methods to earn money online, and they can be quite confusing. One of the best ways to make money online is through affiliate marketing. However, with so many great affiliate marketing programs on the net, picking the right one can be hard. You don’t need special skills to do affiliate marketing. You [...]

Read the full article →

How You Go About Incorporating a Business

December 8, 2009

If you are opening a new business, then congratulations are in order for you. Starting a new company takes a lot of work. Prior to opening the doors for operation, you will want to get registered in the region you are operating in in some shape or form. Lots of brand new proprietors look into [...]

Read the full article →

Results of First Page Ranking

December 6, 2009

Here is a case study of the revenue that a client achieved by optimizing a single keyword that moved from the bottom of the second page of Google to a number 4 position, above the fold on the first page. A client’s website had a ranking of 18 for their primary target keywords on the [...]

Read the full article →

Terrific Opportunities for Affiliate Marketing Businesses

December 1, 2009

Being an affiliate or associate marketer is frequently a difficult enterprise.  There is much more to learn than most of us anticipated when we first started.  The learning curve is too steep for some, and many simply drop out. If you’re reading this, I hope that you are one of those select few who will [...]

Read the full article →